Question
Victoria Produces Product Alpha. Alpha has a standard direct material and direct labour cost as follows. 0.5 kilograms of at $4 per kilogram = $2
Victoria Produces Product Alpha. Alpha has a standard direct material and direct labour cost as follows.
0.5 kilograms of at $4 per kilogram = $2 per unit.
2 hours of at $2 per hour = $4 per unit.
During June, 9,700 units of were manufactured, using 4,600 kilograms costing $19,600 and 17000 paid hours valuing $33,600. 1000 hours were idle.
Requirement:
A. Calculate all three direct material variances and state whether they are favorable or adverse. Also reconcile them. (4 marks) B. Calculate all four direct labour variances and state whether they are favorable or adverse. Also reconcile them.
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